Last week, the Wall Street Journal gave a glimpse into the ‘informal economies’ of the developing world. In India, less than 10 percent of the labor force is employed in the formal economy, according to Edward Luce, Financial Times correspondent and author of In Spite of the Gods The activity of the informal economy has largely been seen by economists as useless from a development and growth view point. But the WSJ piece reports that in light of the recent global financial crisis, these same scholars have begun to reevaluate the benefits of this unregulated market.  While street peddlers and ‘underground’ hired help do not pay taxes or receive a regular salary, their livelihood is not as dependent upon the ups and downs of the formal market economy as their counterparts in the formally recognized sector.  The informal economy has proven itself to be a ‘safety net’ of sorts for those laid off from the formal economy.  While some use the crisis as evidence to embrace this sector, we should avoid romanticizing the entrepreneurial activities of the poor: informal economic activity may generate some income, but it is highly unlikely to generate sufficient stability for families to leverage themselves out of poverty.